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Related papers: It\^o integral for a two-sided L\'evy process

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We present an alternative construction of the infinite dimensional It\^{o} integral with respect to a Hilbert space valued L\'{e}vy process. This approach is based on the well-known theory of real-valued stochastic integration, and the…

Probability · Mathematics 2025-11-21 Stefan Tappe

Let $\{X_{1}(t)\}_{0\leq t\leq1}$ and $\{X_{2}(t)\}_{0\leq t\leq1}$ be two independent continuous centered Gaussian processes with covariance functions$R_{1}$ and $R_{2}$. This paper shows that if the covariance functions are of finite…

Probability · Mathematics 2010-07-16 Albert Ferreiro-Castilla , Frederic Utzet

Extending It\^o's formula to non-smooth functions is important both in theory and applications. One of the fairly general extensions of the formula, known as Meyer-It\^o, applies to one dimensional semimartingales and convex functions.…

Mathematical Finance · Quantitative Finance 2015-07-02 Ramin Okhrati , Uwe Schmock

In the framework of vector measures and the combinatorial approach to stochastic multiple integral introduced by Rota and Wallstrom [Ann. Probab. 25 (1997) 1257--1283], we present an It\^{o} multiple integral and a Stratonovich multiple…

Probability · Mathematics 2010-11-11 Mercè Farré , Maria Jolis , Frederic Utzet

A comparison principle for stochastic integro-differential equations driven by Levy processes is proved. This result is obtained via an extension of an Ito formula from [11] for the square of the norm of the positive part of $L_2-$valued,…

Probability · Mathematics 2016-09-09 Konstantinos Dareiotis , Istvan Gyongy

We provide a L\'evy-It\^o decomposition of sample paths of L\'evy processes with values in complete locally convex Suslin spaces. This class of state spaces contains the well investigated examples of separable Banach spaces, as well as…

Probability · Mathematics 2015-10-05 Florian Baumgartner

We study the composition of bivariate L\'evy process with bivariate inverse subordinator. The explicit expressions for its dispersion and auto correlation matrices are obtained. Also, the time-changed two parameter L\'evy processes with…

Probability · Mathematics 2025-03-07 Pradeep Vishwakarma , Manisha Dhillon , Kuldeep Kumar Kataria

Several versions of It\^{o}'s formula have been obtained in the context of the functional stochastic calculus. Here, we revisit this topic in two ways. First, by defining a notion of derivative along a functional, we extend the setting of…

Probability · Mathematics 2022-02-25 Christian Houdré , Jorge Víquez

In this paper we give the decomposition of a martingale under the sublinear expectation associated with a $G$-L'evy process X with finite activity and without drift. We prove that such a martingale consists of an Ito integral w.r.t.…

Probability · Mathematics 2014-04-09 Krzysztof Paczka

Motivated by the study of existence, uniqueness and regularity of solutions to stochastic partial differential equations driven by jump noise, we prove It\^{o} isomorphisms for $L^p$-valued stochastic integrals with respect to a compensated…

Functional Analysis · Mathematics 2014-10-29 Sjoerd Dirksen

We study monotone and convex stochastic orders for processes with independent increments. Our contributions are twofold: First, we relate stochastic orders of the Poisson component to orders of their (generalized) L\'evy measures. The…

Probability · Mathematics 2017-08-16 David Criens

We consider Malliavin calculus based on the It\^o chaos decomposition of square integrable random variables on the L\'evy space. We show that when a random variable satisfies a certain measurability condition, its differentiability and…

Probability · Mathematics 2016-05-25 Eija Laukkarinen

We introduce a Skorokhod type integral and prove an Ito formula for a wide class of Gaussian processes which may exhibit stochastic discontinuities. Our Ito formula unifies and extends the classical one for general (i.e., possibly…

Probability · Mathematics 2021-05-28 Christian Bender

In this paper, we obtain explicit product and moment formulas for products of iterated integrals generated by families of square integrable martingales associated with an arbitrary L\'evy process. We propose a new approach applying the…

Probability · Mathematics 2018-09-04 Paolo Di Tella , Christel Geiss

Statistical inference for stochastic processes based on high-frequency observations has been an active research area for more than a decade. One of the most well-known and widely studied problems is that of estimation of the quadratic…

Econometrics · Economics 2022-02-03 B. Cooper Boniece , José E. Figueroa-López , Yuchen Han

We extend the It\=o formula \cite{MR1837298}*{Theorem 2.3} for semimartingales with rcll paths. We also comment on Local time process of such semimartingales. We apply the It\=o formula to L\'evy processes to obtain existence of solutions…

Probability · Mathematics 2016-09-23 Suprio Bhar

Langevin equation with a multiplicative stochastic force is considered. That force is uncorrelated, it has the L\'evy distribution and the power-law intensity. The Fokker-Planck equations, which correspond both to the It\^o and Stratonovich…

Statistical Mechanics · Physics 2015-05-13 Tomasz Srokowski

The paper considers the integration theory for $G$-L\'evy processes with finite activity. We introduce the It\^o-L\'evy integrals, give the It\^o formula for them and establish SDE's, BSDE's and decoupled FBSDE's driven by $G$-L\'evy…

Probability · Mathematics 2014-11-11 Krzysztof Paczka

In this article, the problem of semi-parametric inference on the parameters of a multidimensional L\'{e}vy process $L_t$ with independent components based on the low-frequency observations of the corresponding time-changed L\'{e}vy process…

Methodology · Statistics 2012-01-31 Denis Belomestny

A well-known It\^o formula for finite dimensional processes, given in terms of stochastic integrals with respect to Wiener processes and Poisson random measures, is revisited and is revised. The revised formula, which corresponds to the…

Probability · Mathematics 2020-07-30 István Gyöngy , Sizhou Wu
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